PRINCETON, N.J. — Chambers Street Properties has acquired 100 percent of the interests in a $493 million portfolio of mostly office properties from Indianapolis-based Duke Realty Corporation (NYSE:DRE). The REIT has agreed to pay $98.6 million for the interest it doesn’t already own in the 17 commercial properties, according to media reports.
The properties acquired are 16 office buildings and one warehouse/industrial building and include:
· The Landings I, The Landings II and McAuley Place, three office buildings totaling 542,000 square feet in Cincinnati
· Atrium I and Easton III, two office buildings totaling 451,000 square feet in Columbus, Ohio
· Point West I, an 183,000-square-foot office building in Dallas
· Miramar I and II, two office buildings totaling 223,000 square feet in Fort Lauderdale, Fla.
· 22535 Colonial Parkway, a 90,000-square-foot office building in Houston, Texas
· Norman Pointe I and II, two office buildings totaling 537,000 square feet in Minneapolis
· Celebration Office Center and Northpoint III, two office buildings totaling 209,000 square feet in Orlando, Fla.
· Goodyear Crossing Ind. Park II, an 820,000-square-foot warehouse/distribution facility in Phoenix
· 1400 Perimeter Park Drive, 3900 N. Paramount Parkway and 3900 S. Paramount Parkway, three office buildings totaling 265,000 square feet in Raleigh, N.C.
Chambers Street and Duke Realty have been joint venture partners since 2008 and the remaining interest held by the joint venture now includes 20 properties in the United States. Chambers Street and Duke Realty continue to own 80 percent and 20 percent, respectively, of the remaining joint venture.
“This is a mutually agreeable transaction which has conveyed full ownership and control of 17 high-quality commercial properties in markets where Chambers Street currently operates,” says Philip Kianka, executive vice president and chief operating officer of Princeton-based Chambers Street Properties. “The transaction is in keeping with our fundamental investment strategy while still allowing us to continue with our successful relationship with Indianapolis-based Duke Realty on the remaining assets held by the joint venture.”
Chambers Street Properties is a self-managed Maryland real estate investment trust that acquires and manages high-quality corporate real estate leased on a long-term basis to creditworthy tenants in the United States, Europe and the United Kingdom.
Chambers Street has assembled a geographically diverse portfolio of 129 properties across three continents in more than 40 markets.
Duke Realty’s stock price closed at $16.82 per share on Monday, March 18, up from $14.78 a year ago.
— Rachel Goff